HP Misses Q3 Earnings Expectations Despite Revenue Growth

HP Inc. (NYSE:HPQ) is a leading entity in the computer and printer industry, competing within the Zacks Computer - Micro Computers sector against other technological behemoths. The company's recent quarterly earnings report on May 28, 2025, showcased a mixed financial performance, capturing the attention of both investors and market analysts.

The earnings report highlighted several key financial figures and strategic decisions by HPQ, including:

• Earnings Per Share (EPS) of $0.71, missing the Zacks Consensus Estimate of $0.80 and marking a decrease from the previous year's $0.82 per share.
• Revenue of $13.22 billion, surpassing the expected $13.13 billion, yet indicating a modest year-over-year growth of 3.3%.
• A significant stock price decline of 15% post-earnings announcement, influenced by the earnings miss and future financial outlook adjustments due to U.S. tariffs.

Despite the earnings shortfall, HPQ's revenue exceeded market expectations, reporting $13.22 billion against the forecasted $13.13 billion. This represents a 3.3% increase from the $12.8 billion reported in the same period the previous year. However, it's important to note that HP has only surpassed consensus revenue estimates once in the last four quarters, indicating potential volatility in its revenue streams.

The aftermath of the earnings report saw HPQ's stock experiencing a significant downturn, dropping by 15%. The company attributed this decline to the "added cost driven by the current U.S. tariffs" implemented by President Donald Trump's administration. In an effort to counteract these challenges, HP announced intentions to increase product prices and diversify its production base outside of China.

Looking ahead, HPQ has revised its financial outlook, projecting third-quarter adjusted earnings to range between $0.68 and $0.80 per share, which is below the average analyst estimate of $0.90. The full-year adjusted earnings are expected to be between $3 and $3.30 per share, not meeting the anticipated $3.49 per share. The company's financial health, as indicated by a P/E ratio of 9.49 and a price-to-sales ratio of 0.48, reflects the market's current valuation of its earnings and revenue performance.

• Morgan Stanley updated its rating for HP Inc. (NYSE:HPQ) to "Equal-Weight," with a price target increase from $25 to $29.
• HP is expected to report quarterly revenue of $13.15 billion, up from $12.8 billion a year ago, with earnings of 80 cents per share.
• The stock offers an annual dividend yield of 4.09%, requiring an investment of approximately $146,830 to earn $500 monthly from dividends.

HP Inc. (NYSE:HPQ) is a renowned technology company that specializes in personal computers, printers, and related supplies, competing with tech giants like Dell and Lenovo. On May 28, 2025, Morgan Stanley updated its rating for HP Inc. (NYSE:HPQ) to "Equal-Weight," maintaining a "hold" stance. At the time of this announcement, the stock price was $27.99.

HP is set to release its second-quarter financial results after the market closes on May 28. Analysts expect earnings of 80 cents per share, slightly down from 82 cents per share in the same period last year. However, the company is expected to report quarterly revenue of $13.15 billion, up from $12.8 billion a year ago.

Morgan Stanley analyst Erik Woodring has maintained an Equal-Weight rating on HP, while raising the price target from $25 to $29. This adjustment reflects a positive outlook on the stock's potential performance. The current stock price of HPQ is $28.06, showing a decrease of approximately 1.01% with a change of $0.29.

HP offers an annual dividend yield of 4.09%, translating to a quarterly dividend of 29 cents per share. For investors aiming to earn $500 monthly from HP's dividends, they would need to own about 5,181 shares, equating to an investment of around $146,830.

The stock has traded between $27.93 and $28.35 today, with a market capitalization of approximately $26.45 billion. Over the past year, HPQ has reached a high of $39.80 and a low of $21.21. The trading volume on the NYSE is 1,179,913 shares, indicating active investor interest.

HP (NYSE:HPQ) reported fiscal fourth-quarter earnings that surpassed Wall Street estimates, but its weaker-than-expected guidance for the current quarter sent shares plunging over 8% in pre-market today.

For the fourth quarter, HP posted adjusted earnings per share (EPS) of $0.93, in line with analyst expectations, and revenue of $14.1 billion, slightly exceeding the Street consensus estimate of $13.99 billion. Personal systems, the company's largest segment, saw net revenue climb 9% year-over-year to $11.5 billion, while printing net revenue edged up 1% to $4.5 billion.

Despite the solid quarterly results, HP’s outlook for the first quarter of fiscal 2025 disappointed investors. The company projected adjusted EPS between $0.70 and $0.76, significantly below the Wall Street analysts’ estimate of $0.86.

Looking further into fiscal 2025, HP provided guidance for adjusted EPS in the range of $3.45 to $3.75 and projected free cash flow between $3.2 billion and $3.6 billion.

HP (NYSE:HPQ) reported fiscal fourth-quarter earnings that surpassed Wall Street estimates, but its weaker-than-expected guidance for the current quarter sent shares plunging over 8% in pre-market today.

For the fourth quarter, HP posted adjusted earnings per share (EPS) of $0.93, in line with analyst expectations, and revenue of $14.1 billion, slightly exceeding the Street consensus estimate of $13.99 billion. Personal systems, the company's largest segment, saw net revenue climb 9% year-over-year to $11.5 billion, while printing net revenue edged up 1% to $4.5 billion.

Despite the solid quarterly results, HP’s outlook for the first quarter of fiscal 2025 disappointed investors. The company projected adjusted EPS between $0.70 and $0.76, significantly below the Wall Street analysts’ estimate of $0.86.

Looking further into fiscal 2025, HP provided guidance for adjusted EPS in the range of $3.45 to $3.75 and projected free cash flow between $3.2 billion and $3.6 billion.

HP Inc. (NYSE:HPQ) reported third-quarter earnings that missed analyst expectations. Despite the earnings miss, the company's revenue surpassed estimates, marking a return to growth.

For the quarter, HP posted adjusted earnings per share of $0.83, falling short of the Street consensus of $0.86. However, revenue increased by 2.4% year-over-year to $13.52 billion, exceeding the expected $13.37 billion.

The Personal Systems segment, which includes PCs, experienced a 5% year-over-year revenue increase to $9.4 billion, while the Printing segment saw a 3% decline to $4.1 billion.

Enrique Lores, President and CEO of HP Inc., expressed satisfaction with the company's revenue growth and highlighted the launch of their next-generation AI PC lineup as a key achievement.

Looking ahead, HP provided a fourth-quarter adjusted EPS forecast of $0.89 to $0.99, compared to the $0.95 analyst estimate. The company also narrowed its full-year 2024 adjusted EPS guidance to a range of $3.35 to $3.45, with the midpoint below the consensus of $3.45.